1.1 This statement of policy (SoP) sets out the Prudential Regulation Authority's (PRA) approach to operating the Small Domestic Deposit Taker (SDDT) regime. It covers:

• how UK banks and building societies ('firms') that meet the SDDT criteria, and CRR consolidation entities that meet the SDDT consolidation criteria can access the SDDT Regime;

• how firms and CRR consolidation entities that are part of groups based outside of the UK could access the SDDT regime;

• how firms and consolidation entities will be treated in the case of a merger, acquisition, a disposal of entities or activities, or similar circumstances;

• how firms that cease to meet the SDDT criteria, and consolidation entities that cease to meet the SDDT consolidation criteria, will transition out of the SDDT regime; and

• the PRA's approach to reviewing the SDDT criteria.